United Kingdom

Tax residency

Under Schedule 45 to the Finance Act 2013, an individual's residence status is determined through the SRT. The result depends on physical presence, work, homes and other connections with the UK, as well as the individual's residence history.

Where an individual is also treated as resident in another jurisdiction, the applicable double tax treaty may determine treaty residence through its tie-breaker provisions.

Split year treatment: residence is normally determined for the entire UK tax year. However, where one of eight statutory split-year cases applies, a year in which the individual is UK resident may be divided into a UK part and an overseas part. Split-year treatment is available only where the detailed conditions of the relevant case are satisfied.

• Automatic overseas tests: an individual is automatically non-UK resident if any applicable overseas test is satisfied. Broadly, a person who was UK resident in at least one of the previous three tax years may qualify by spending fewer than 16 days in the UK, while a person who was not UK resident in any of those years may qualify by spending fewer than 46 days. A further test applies to qualifying full-time work overseas, subject to limits on UK presence and UK workdays.
• Automatic UK tests: if none of the automatic overseas tests applies, an individual may be automatically UK resident. The principal tests cover spending at least 183 days in the UK, having a qualifying UK home position, or working full-time in the UK over the relevant 365-day period.
• Sufficient ties test: if none of the automatic tests determines the result, residence depends on the number of UK ties combined with the number of days spent in the UK. The relevant ties are family, accommodation, work and the 90-day tie. An additional country tie applies to individuals who were UK resident in at least one of the previous three tax years. The more UK ties an individual has, the fewer UK days are required to become resident.

Day counting

As a general rule, a day counts as spent in the UK if the individual is present in the UK at midnight. Certain transit days may be excluded. Days spent in the UK because of qualifying exceptional circumstances may also be disregarded, subject generally to a maximum of 60 days and the specific rules applicable to the relevant SRT test.

A special deeming rule may add certain days on which the individual was present in the UK but left before midnight. Broadly, it may apply where the individual was UK resident in at least one of the previous three tax years, has at least three UK ties and has more than 30 such qualifying days. Days after the first 30 may then be treated as UK days for relevant SRT purposes.

• Automatic overseas tests: the first two tests require fewer than 16 or fewer than 46 UK days, depending on residence in the previous three tax years. The full-time overseas work test generally requires fewer than 91 UK days and fewer than 31 UK workdays, with a UK workday generally being a day on which more than three hours of work are performed in the UK.
• Automatic UK tests: presence for 183 days or more during the UK tax year results in UK residence. The home and full-time UK work tests contain their own presence, home and working-time conditions rather than relying solely on an annual number of UK days.
• Sufficient ties test: for an individual who was UK resident in at least one of the previous three tax years, residence may arise with 4 ties at 16 to 45 days, 3 ties at 46 to 90 days, 2 ties at 91 to 120 days, or 1 tie at 121 to 182 days. For an individual who was non-resident throughout the previous three tax years, the corresponding thresholds are 4 ties at 46 to 90 days, 3 ties at 91 to 120 days, and 2 ties at 121 to 182 days.

Tax consequences

UK tax residents are generally subject to UK tax on their worldwide income and gains, subject to applicable exemptions, reliefs and double taxation agreements. Non-residents are generally taxable only on specified UK-source income and gains.

From 6 April 2025, the former non-domicile remittance basis was replaced by the 4-year Foreign Income and Gains (FIG) regime. Qualifying new UK residents who were non-UK resident for the previous ten consecutive tax years may claim relief for eligible foreign income and gains during their first four tax years of UK residence.

Where split-year treatment applies, the overseas and UK parts of the tax year are subject to separate rules for determining the scope of UK taxation.

Migration / residence

UK immigration status and UK tax residence are separate concepts. Depending on nationality, purpose and duration of stay, an individual may require a visa or other immigration permission to live, work or study in the UK.

Holding a UK visa, immigration permission or eVisa does not by itself establish UK tax residence. The Statutory Residence Test remains decisive for determining domestic tax residence.

Orientation references

• Finance Act 2013, Schedule 45, “Statutory residence test”, statutory basis for the automatic overseas tests, automatic UK tests, sufficient ties test, day-counting rules and split-year treatment.
• His Majesty's Revenue and Customs (HMRC), “RDR3: Statutory Residence Test (SRT) notes”, official guidance on determining UK residence, automatic tests, sufficient ties and split-year treatment.
• HMRC, “Residence and FIG Regime Manual”, detailed official guidance on the Statutory Residence Test, day counting, homes, work, UK ties and split-year treatment.
• HMRC, “Check if you can claim the 4-year foreign income and gains regime”, official guidance on the Foreign Income and Gains (FIG) regime applying from 6 April 2025.